Latest news with #CPPIB
Mint
4 days ago
- Business
- Mint
Animal spirits: Zenex investors dial bankers for $1 billion sale or IPO
Owners of Zenex Animal Health are exploring a stake sale that could value the veterinary drug maker at over $1 billion, three people aware of the plan said. Investors including Multiples Alternatives, late Rakesh Jhunjhunwala's Rare Enterprises, Canadian pension firm CPPIB and IFC are looking at either an outright sale of Zenex or a public listing, the people said on the condition of anonymity. The company's management and investors invited bankers late last month to prepare an exit plan through a sale or listing, the people said on the condition of anonymity. The consortium had acquired the maker of livestock, poultry and pet medicines from pharma major Zydus Cadila for ₹2,921 crore in 2021. Sharp growth 'An investment banker is likely to be appointed soon, after which the process will kickstart by next month," one of the three people said, adding the company has grown multifold in the last four years. Queries emailed to the spokespersons of Multiples and Zenex remained unanswered. A Rare Enterprises spokesperson did not respond to calls and IFC and CPPIB declined to comment. The Zenex sale plan comes in the wake of Advent International recently buying a significant minority stake in Irish pet medicine maker Felix Pharma for $175 million, in what is seen as betting on fast-growing global market for generic pet medicines. Sale or IPO As per the second person cited above, Rare Enterprises specializes in taking companies public and helping them navigate the journey from private to public; and with CPPIB and IFC expected to stay invested for the long term, an IPO is a possible outcome. 'In which case, Multiples will sell as part of the offer for sale (OFS) in the IPO," he added. Zenex's key segments are livestock business, poultry and exports. Therapeutics and farm care are part of the livestock segment. The company claims it has more than 250 brands and 100,000 vet and para-vet relationships, and sells across 45,000 retailers. It is associated with 14,000 dairy farms, 10,000 poultry farms and 5,000 stockists, the company website claims. Its peers include Virbac Animal Health India, Elanco India, MSD Animal Health India (part of Merck & Co.), Zoetis India Ltd, Ceva Polchem, Cargill India and Boehringer Ingelheim India. 'The company has global ambitions and can be an ideal candidate for either a buyout fund betting on the segment, or a strategic investor looking at a wide portfolio in the animal pharma segment," the third person cited above said. The India veterinary medicine market size was estimated at $1.73 billion in 2024 and is projected to reach $4.17 billion by 2033, growing at a CAGR of 10.23% from 2025 to 2033. Price, volume growth Zenex posted revenue of ₹823.6 crore in FY24, up from ₹753.8 crore a year earlier, according to market intelligence provider Tracxn. Its profit decreased to ₹14.9 crore from ₹19.3 crore in the same period. Earlier in March, it completed acquisition of Ayurvet, an Ayurvedic pet pharma company to help it unlock new growth drivers. As per an October 2023 ratings release by India Ratings, Zenex has been able to drive price and volume growth across its key segments, aided by strong execution capabilities, key brands and healthy supply chain, mitigating future competition risks. 'It is among the largest companies in the therapeutic segment in terms of revenue, and among the top five companies in the farm care segment in India," the release said. 'The market is experiencing growth due to rising awareness about the importance of animal healthcare, a growing number of animal disease outbreaks, and increasing demand for animal-derived protein. Additionally, new product launches, advancements in veterinary medicine, and strong regulatory support contribute to this growth," a 2023 research report by Grand View Research shows. India's vast livestock population of over 536 million, the largest globally, combined with the heavy dependence of nearly 70% of rural households on animals for livelihood, food security, and income, creates a strong foundation for sustained demand in the veterinary medicine market. Government initiatives such as the National Animal Disease Control Programme (NADCP) significantly amplify this demand, it said.
Mint
4 days ago
- Business
- Mint
Canada Talks Up Pension Funds' Financial Muscle as Lever in US Trade Talks
Canada's major pension funds could boost their investments in the US, a top Canadian cabinet minister said, as the country looks to negotiate a trade agreement with the Trump administration. Dominic LeBlanc, the minister responsible for US trade, is in Washington for talks with US lawmakers. He brought up Canada's pension funds when asked if President Donald Trump will seek a specific pledge for more investment into the US. 'If they're looking for countries that invest massively in the United States, that's great news for Canada,' LeBlanc said in Washington after the meetings. 'Our pension funds alone have over $1 trillion of investment in the United States. That can potentially grow by $100 billion or more a year, and that's just the big nine Canadian pension funds.' The US has offered the idea of increased foreign investments as one option for some partners in exchange for more favorable trade treatment. Trump said this week that the US has reached a trade deal with Japan that includes a promise of a $550 billion Japanese-backed fund for investing in the US, though terms remain unclear. The US and South Korea have also discussed creating an investment vehicle for US projects, people familiar with the matter told Bloomberg News. LeBlanc stopped short of saying the government would force pension funds to increase their US assets or invest in specific American projects as a quid pro quo for lower tariffs from Trump. Canada's public pension managers are significant investors in US infrastructure and other assets. The largest, the Canada Pension Plan Investment Board, had 47% of its capital allocated to the US as of the end of March. Its recent US deals included a joint venture with Equinix Inc. to raise $15 billion to build new data centers, including in the US. But traditionally those pension funds are shielded from political interference in their investment decisions. CPPIB had C$714 billion under management as of March 31. Michel Leduc, a spokesperson for CPPIB, said in an interview that the fund is 'not part of any negotiations' and 'not being asked to invest more in the US,' though 'there's been some outreach from the Canadian government to understand the facts.' CPPIB is expected to grow to C$1 trillion by the early 2030s and 'obviously you will see the dollars being more significant in the US' with that growth, Leduc said. LeBlanc said he met with Commerce Secretary Howard Lutnick on Wednesday night and they had a 'productive, cordial discussion.' On Thursday he met with Republican senators including Tim Scott of South Carolina, Shelley Moore Capito of West Virginia and Roger Marshall of Kansas. But the minister was vague on the question of whether Canada can reach a trade deal with the US by Aug 1. Trump has threatened to hike US tariffs on Canadian imports to 35% on that day, up from 25% — though White House officials have suggested they'll continue exempting goods covered by the North American free trade pact known as USMCA. 'Canadians expect us to take the time necessary to get the best deal we can in the interest of Canadian workers,' LeBlanc said. He said Canada will only sign an agreement once Prime Minister Mark Carney 'decides that it's the best deal we can get.' Earlier this week, Carney himself lowered expectations for an agreement in the short term. He told reporters that Canada's aim 'is not to reach a deal whatever it costs,' but would instead use all the time it needs to reach the best outcome. Carney described the negotiations as complex, in part because the Trump administration has a number of objectives 'that change from time to time.' For now, the Canadian economy has some breathing room because many products, including Canada's vast exports of crude oil, fuel and fertilizer, are exempt from tariffs when they're shipped under the rules of the US-Mexico-Canada Agreement. Yet Canada still faces US tariffs and duties on a few key sectors: autos, steel, aluminum and lumber. Carney's team has been looking for a path forward on eliminating or at least reducing those tariffs. Kirsten Hillman, Canada's ambassador to the US, told reporters that American officials have taken note of Canada's recent actions to limit foreign steel imports — particularly from China. 'There is a time when the deal is the right deal, and it's important for us to be in a position to continue negotiating til we get to that point,' she said. 'Some of the measures that we're taking, including in steel last week, are designed to help us have the route that we need to get where we need to go.' This article was generated from an automated news agency feed without modifications to text.
Yahoo
5 days ago
- Business
- Yahoo
BP's Castrol unit gets One Rock Capital Partners' bid, Bloomberg News reports
(Reuters) -One Rock Capital Partners, a U.S. private equity firm, is one of the few remaining bidders for BP's Castrol lubricants business, Bloomberg News reported on Wednesday, citing people familiar with the matter. One Rock declined to comment, while BP did not immediately respond to a Reuters' request for comment outside regular business hours. The private equity firm is bidding for the entire asset, the report said, adding that Canada Pension Plan Investment Board, another interested party, is only interested in taking a minority stake. Deliberations are ongoing. One Rock and CPPIB could decide against proceeding with their offers, as per the report. Reuters reported in May that BP kicked off the sale of the Castrol lubricants business, which could raise between $8 billion and $10 billion. Saudi Aramco was one of the parties considering a potential bid for the business. Bloomberg previously reported that the lubricants business also attracted interest from companies such as India's Reliance Industries, buyout firms Apollo Global Management and Lone Star Funds, among others. Several big-name energy companies and financial suitors have dropped out of the bid and valuation expectations have slipped, Bloomberg reported on Wednesday, adding that BP may also opt to keep the asset for longer. Sign in to access your portfolio
Mint
03-07-2025
- Business
- Mint
ReNew promoters, Masdar revise offer to take it private
The consortium of promoters of ReNew Energy Global has revised its offer to take the Nasdaq-listed renewable energy company private. The consortium on Thursday increased its offer price to $8 per share, payable in cash compared with the original offer of $7.07 per share. A filing by ReNew at the US Securities and Exchange Commission said: 'Our due diligence investigation has allowed us to assess the performance of the company and its outlook and refine our view on valuation. On that basis, the consortium is prepared to increase its offer price to US$8.00 per share, payable in cash, for the entire issued and to-be-issued share capital of the company not already owned by the members of the consortium.' "Our revised proposal would provide the company's shareholders with a 26% premium to the closing share price of $6.34 per share on December 10, 2024 and a 39% premium to the 30-day volume-weighted average price of $5.76 per share (as of December 10, 2024)," it said. Describing it as the "final non-binding offer", the filing said the revised proposal, which would provide shareholders with immediate liquidity and value certainty not available in public markets, would be in the best interest of the company and its shareholders, and the consortium trusts that it bears evidence of its willingness to take the transaction forward. The consortium expects the special committee, its advisors and the company to engage with top shareholders to ensure their support of the transaction, it said. In December last year, the consortium of promoters of ReNew Energy Global, including Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA) and founder Sumant Sinha, along with new investor Masdar, proposed to buy out the listed shares to take the company private. CPPIB, ADIA and Sinha, together own 64% of the company. Masdar, the new investor, is a UAE government-backed renewable energy company. The board of directors of the company formed a special committee led by Manoj Singh, the lead independent director, and comprising six independent non-executive directors, to consider the non-binding proposal. The consortium has now proposed the revised offer to the special committee. The role of the committee is to explore and evaluate all strategic capitalization and financing opportunities available to the company, including the proposal received from the consortium, and act in the interests of all investors. The company in June reported a five-fold year-on-year jump in its profit in the quarter ended March. Its net profit for the fourth quarter of FY25 stood at ₹ 313.7 crore ($37 million) compared with ₹ 60.9 crore ($7 million) a year earlier.
National Observer
27-06-2025
- Politics
- National Observer
A tale of two pension funds: one abandons net-zero, the other doubles down on climate action
Temperatures soared across Ontario this week, hitting record highs as a heat dome settled over the province. And at Tecumseh Public School in Burlington, one Grade 4 student had a question on his mind. 'Will I be alive in 2100?' Jennifer Reid, the student's teacher, said she was struck by the question. The child would be 85 at the turn of the next century. 'Yeah, I think you'll be alive then,' she told him. 'But then the question is, what is the world going to look like in 2100?' she said in an interview with Canada's National Observer. Extreme heat, made more common and more severe due to fossil fuel-driven climate change, meant children were 'suffering outside' during recess this week, she said. Across the province, many children are simply unable to go to school or get picked up early because the heat is just too unbearable, she said. Reid says that as an educator, she found the student's question interesting to think about because while 2100 may feel far away, there is nonetheless an 'urgency [to] the question.' That child, and millions like him, will be collecting their pensions in the decades to come. And while many think of retirees when they think of pensions, public pension plans have a legal fiduciary duty to act in the best interests of all their members — not simply the ones actively collecting right now. A tale of two pension funds: 'While one is advancing credible, science-based action to protect pensions and the planet, the other is retreating under the guise of regulatory caution.' said Carol Liao, chair of the Canada Climate Law Initiative. It's against the backdrop of pension plans and climate change that Reid was speaking to Canada's National Observer. As a worker paying into the Canada Pension Plan, she called it 'very worrying, concerning and disappointing' that the fund, which manages the retirement savings of 22 million Canadians, has chosen to abandon its commitment to net-zero emissions by 2050. The most recent annual report from Canada Pension Plan Investment Board (CPPIB) said its decision to ditch net-zero targets was due to 'recent legal developments in Canada' — a likely reference to the federal anti-greenwashing rules put forward in the Competition Act, known as C-59, last year. Those rules require companies making green claims, like reaching net-zero, to substantiate them using internationally recognized methodology. 'There is increasing pressure to adopt standardized emissions metrics and interim targets, many of which don't reflect the complexity of a global investment portfolio like ours,' the CPPIB said at the time. 'Forcing alignment with rigid milestones could lead to investment decisions that are misaligned with our investment strategy. 'To avoid that risk — and to remain focused on delivering results, not managing legal uncertainty — we have made a considered decision to no longer maintain a net-zero by 2050 commitment.' Mere weeks after the CPPIB walked back its net-zero target, the country's next-largest public pension fund, the Caisse de dépôt et placement du Québec (CDPQ), published its climate action plan and related transition financing framework which doubled down on climate action — effectively blowing a hole through the rationale the CPPIB put forward. The Quebec pension fund announced its goal to invest $400 billion in climate action by 2030 and explicitly linked its investing framework to internationally recognized metrics. To incentivize action, it also linked executive compensation to meeting its climate targets. 'This is what credible climate-aligned governance looks like in practice, and the contrast between CDPQ and CPPIB couldn't be starker,' said Carol Liao, an associate professor at the University of British Columbia's Allard Law School, co-director of the UBC Centre for Climate Justice, and chair of the Canada Climate Law Initiative. 'While one is advancing credible, science-based action to protect pensions and the planet, the other is retreating under the guise of regulatory caution.' Oily boardroom While the CDPQ and CPPIB are comparable in many ways — both are major global investors with hundreds of billions in assets, both manage retirement savings for millions of people and both are subject to the same financial regulations in Canada — there is at least one area where they are quite different: board membership. Three of the 10 members of CPPIB's board of directors also sit on the boards of fossil fuel companies. The CDPQ, by contrast, does not have any board directors who also sit on the board of a fossil fuel company. CPPIB's board includes Barry Perry (former CEO of Fortis) who now sits on the board of Capital Power; Judith Athaide who also sits on the board of Kiwetinohk Energy, and Ashleigh Everett who is also the president and a director of Royal Canadian Securities, a holding company for Domo Gasoline Corporation. The CPPIB declined to comment when asked how it is ensuring its leadership is acting in the best long-term interest of its members, what it makes of its peer CDPQ taking an opposite strategy, and if it has information demonstrating what steps it is taking to protect the retirement savings of Canadians through the energy transition. Marcus Taylor, a professor of global development studies at Queen's University, a contributing author to the Intergovernmental Panel on Climate Change, and a contributor to the Canada Pension Plan said in a statement that he was 'disappointed' to learn about the board's ties to the fossil fuel industry. 'I can't help but wonder if these fossil fuel interests influenced CPPIB's decision to abandon net-zero by 2050 and continue investing billions in oil and gas expansion.' The findings were identified in a study published Thursday by pension watchdog Shift. Patrick DeRochie, senior manager with Shift, told Canada's National Observer the presence of fossil fuel-linked board members raises conflict of interest concerns. 'When a board is looking at and approving a decision like backing away from a net-zero commitment or developing a climate strategy, what does it mean when you have someone who has a legal obligation to Fortis in that room, or RBC in that room?' he said. With US$132.4 billion invested in fossil fuels since 2021, RBC is the top fossil fuel financing bank in Canada, and the world's eighth largest in a global ranking published in the annual Banking on Climate Chaos report. 'You have one legal obligation that relies on financing fossil fuel companies, expanding gas pipelines, prolonging and expanding the use of fossil fuels — and you have the other that has a legal obligation to a 25-year-old who won't retire until 2060 or 2070 and needs to rely on climate stability to be able to collect their pension,' he said. Beyond the fiduciary obligations, DeRochie said it's also worth considering what views are informing the pension plans' investing strategies. 'Are they coming in there and spewing propaganda from the fossil fuel industry when they're making a decision about a pension plan's net-zero policy, or are they actually grounding their investment and [asset-management] decisions in climate science?' he said. 'Those are two very different things, and I have no reason to believe that somebody who is on the board of RBC or a fossil fuel company is treating climate change with the urgency and severity that it's shown to be.' Liao said because pension funds manage the retirement savings of millions of Canadians, their ability to deliver long-term returns is fundamentally linked to climate stability — so credible, sustainable governance of pensions requires aligning long-term investing strategies with climate science. 'Climate risk is financial risk, and ignoring that reality is a failure of governance,' she said, adding that 'climate alignment isn't a PR exercise; it's a long-term, risk-management imperative.' One of the most pressing financial risks are stranded assets: fossil fuel assets like pipelines, LNG terminals, and oil and gas fields that could be worth significantly less than expected — meaning investors won't recoup the money they've sunk into them. In a study published Wednesday, the International Institute for Sustainable Development and Environmental Defence found two-thirds of future fossil fuel investments made by companies, typically financed by banks, pension funds and asset managers, are at risk of becoming stranded if the world achieves its climate targets. 'Restricting oil and gas development would protect the Canadian economy from overinvesting in soon-to-be surplus assets, regardless of whether global climate ambition increases,' the report found. The findings add to a mountain of evidence that the stranded asset issue is pressing for Canadians, including a 2022 finding
